Mid Week Reads: September 15th, 2021
The world has become a crazy place, it has been for a long time now. Here are a few things we think should be on your radar if they are not already.
Tax
Your Taxes will change if you make more than $400k.
Yes…your RSUs, ISOs, and other equity compensation can make your “taxable income” go over $400k and put you in this category.
2021 Proposed Tax Changes are currently being doled out by the House ways and Means Committee and release a draft of major tax legislation and if you don’t want to read the 881 pages, maybe settle for the Section by Section 41 page “Summary”? released earlier this week.
Don’t want to do the reading, here are the highlights:
Single filers below $400k (MFJ filers below $450k) will probably not see much impact or difference in their taxes. If you make over those amounts, your tax picture will change quickly.
Make between $125k and $14o per year and use to making “back door” roth contributions? You’re safe for now, but The Feds want to “close” the backdoor Roth IRA for those who make over $400k in taxable income (yes, your RSUs and ISOs can mess with this). Which currently works for those who make over $125k, who cannot make contributions to a Roth IRA because they make too much money and can’t deduct contributions (or parts of a contribution if you make between $125k and $140k) to a traditional. IRA either for the same reason. So if you are not going to get a deduction, you’re often better off putting it in a roth IRA where the gains and future distributions are not taxed.
We will have more on this later next week. This isn’t going away anytime soon.
COVID-19
More people are quitting in “The Great Resignation”
More people are quitting their corporate “ladder climbing” jobs to have better overall work-life balance and just generally be f*ucking happier with life.
It’s getting bad, but not for everyone. Mainly the unvaccinated. CDC study: Unvaccinated 11 times more likely to die from Covid-19
More people are quitting their jobs to get a better work-life balance. We think this WSJ article gives some pretty good tips on how to prepare your finances before quitting your job.
Art & Culture
George Wein, founder of New Orleans Jazz and Heritage Festival and Newport music festivals, dies at 95
Credit: WWLTV New Orleans, AP
George Wein performs at the Newport Jazz Festival in 2015.(AP Photo/Joe Giblin)
